Can we save tax by expenses details?

POSTED BY Rishi Mehta ON August 14, 2012 2:26 pm COMMENTS (2)

Pl.consider this mail that I recieved to save tax:

If on a — SALARY OF 65000/-
SHOW 7000/- AS TRAVELLING EXPENSES
SHOW 3000/- AS BOOKS,LAUNDRY EXPENSES
SHOW 5000/-AS TELEPHONIC EXPENSES
SHOW 5000/- AS MISCELLANEOUS EXPENSES
SO IT IS A DEDUCTION OF 20000/- PER MONTH SO
YOUR SALARY NOW BECOMES 45000/- FOR TAX PURPOSES-
Now claim other deductions as well.

SO NET YOU HAVE SAVED TAX ON 20000/- per month .'( 2.40,000 per year)

Is it true that tax can be saved in this way ?
Is this trick only for Self employed or also for salaried employees?
Also how much maximum permissible in each category of expenses?
Which form is applicable -Form 16 or 16A?

2 replies on this article “Can we save tax by expenses details?”

  1. Ramesh says:

    Only for business income, you can do so. You need to check with your CA or tax advisor.

  2. BRSINGH says:

    For salaried employee i dont think so. It seems kind of a mail to confuse you.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today